During 20X2, Norton Company had the following transactions:

a. Cash dividends of $20,000 were paid.

b. Equipment was sold for $9,600. It had an original cost of $36,000 and a book value of $18,000. The loss is included in operating expenses.

c. Land with a fair market value of $50,000 was acquired by issuing common stock with a par value of $12,000.

d. One thousand shares of preferred stock (no par) were sold for $14 per share.

Norton provided the following income statement (for 20X2) and comparative balance sheets:

Sales.....................................$ 492,000

Cost of goods sold.....................(300,000)

Gross margin...........................$ 192,000

Operating expenses.....................(132,000)

Net income................................$ 60,000

Required:
Prepare a worksheet for Norton Company.

Transcribed Image Text:

Norton Company Comparative Balance Sheets At December 31,20X1 and 20X2 Accounts reccivable Plant and cquipment Accumulated de (72,000) 9 Liabilities and stockholders' equitv Preferred stock (no par) Paid-in capital in excess of par Total liabilities and stockholders' equity $378,000 $ 489,600